This profile of low-wage workers first establishes the size and scope of
the problem--how many workers can be considered low-wage and how many are
supporting families with children. Then I examine how low-wage workers and
low-wage/low-income workers differ from all workers in their work effort,
skills, location, types of jobs, and demographic traits.

Table 1 shows that 27.9 percent of all workers earned less than $7.50 an
hour in 1997. Nearly three out of five low-wage workers in 1997 were still
low-wage workers in March of 1998. There are two ways to view this statistic:
first, it indicates that a significant number of low-wage workers (nearly 40
percent) will not be low-wage workers in the following year. Second, if we
assume that a low-wage worker in one year has a 60 percent chance of still
being a low-wage worker the following year, then we would expect one out every
five low-wage workers to earn less than $7.50 an hour for four consecutive
years.(3)

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. A persistently
low-wage worker fell into the low-wage category in both 1997 and March
1998.

Table 1 also shows that 9.6 percent of all workers are low-wage workers
living in low-income families; hence, only about one-third of all low-wage
workers (9.6/27.9) live in families with incomes below $24,600. In addition,
the share of workers in low-income households is 13.2 percent, indicating that
3.6 percent of all workers (13.2-9.6) live in low-income families even though
they earn more than $7.50 an hour. As figure 1 summarizes, over one-quarter of
all workers are low-wage workers, but only one out of every ten workers is a
low-wage worker living in low-income family. Further, only one out of every
twenty workers is a low-wage worker in a low-income family with children.

Next, consider the role low-wage workers' earnings play in total family
income. As Table 2 and Figure 2 show, 49 percent of low-wage workers have
earnings that represent less than one-quarter of their families' incomes.
However, Figure 3 shows that among low-wage/low-income workers, nearly
one-third are the only source of income for their families and two-thirds
provide more than 50 percent of their families' incomes. By contrast, only 11.3
percent of all workers and 14.2 percent of low-wage workers have earnings that
account for all of their families' incomes.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 14.2% of low-wage workers earn all of their family's
income.

The lack of income among low-wage/low-income workers may be of particular
concern if they are supporting families. Table 3 shows that 39.8 percent of
low-wage/low-income workers and 35.0 percent of low-wage workers are unmarried
and childless. But low-wage workers and especially low-wage/low-income workers
are more likely to have children than workers in general. Indeed, 52.0 percent
of low-wage/low-income workers have children and 25.9 percent have children
under age six, compared 44.8 and 18.0 percent for all workers. And
low-wage/low-income workers are more than twice as likely to be single parents
than workers in general. Data in Table 4 underscore the importance of family
structure. Over half of all single parents are low-wage workers and 26.2
percent of single mothers are low-wage/low-income workers. Figure 4 shows that
among low-wage/low income workers with children, 21.8 percent are the sole
source of income for their families and half are their families' main bread
winner.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 35.0% of low-wage workers are unmarried with no children.
Column categories are not mutually exclusive.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: in all categories of family composition combined, the
probability of being a low-wage worker is 27.9%. Among workers with children,
29.8% are low-wage. Column categories are not mutually exclusive.

Overall, a substantial share of workers are low-wage workers. However, for
many low-wage status is only temporary. Further, many low-wage workers either
have no dependents or are secondary workers in their families. Only one out of
six low-wage workers are in low-income families with children. Thus, only about
5 percent of all workers are low-wage/low-income workers supporting children.

Table 5 shows that two-thirds of all workers worked full-time and year
round in 1997. In contrast, 42.4 percent of low-wage workers and 38.5 percent
of low-wage/low-income workers were full-time, full-year workers. Low-wage and
low-wage/low-income workers were far more likely to only work part of the year
than workers in general (43.2 and 48.7 percent v. 25.9 percent). On average,
low-wage workers worked 1,490 hours in 1997, compared to 1,841 for all workers.
Low-wage/low-income workers averaged only 1,393 hours; those with children
averaged 1,413 hours. These statistics indicate that low-wage workers do not
work continuously through the year and their incomes would rise if they worked
more even at their current rate of pay.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 42.2% of low-wage workers work full-time/full-year.

Not surprisingly, low-wage workers have considerably less education, on
average, than workers in general. Table 6 shows that while 53.9 percent of all
workers have some post-secondary education, only 35.5 percent of low-wage
workers and 28.5 percent of low-wage/low-income workers had more than 12 years
of schooling. Interestingly, low-wage/low-income workers with children are even
less likely to have post-secondary schooling with only 22.4 percent attending
school beyond the twelfth grade. In addition, only 14.3 percent of all workers
failed to complete high school, as compared to 29.2, 35.1, and 40.4 percent for
low-wage workers, low-wage/low-income workers, and low-wage/low-income workers
with children, respectively. Indeed, low education places workers at extreme
risk of having low wages. For example, 56.9 percent of workers who did not
complete high school were low-wage workers and 23.4 percent were low-wage
workers in low income households (Table 7). These findings suggest that
interventions aimed at raising the work skills of low-wage workers potentially
could improve the status of low-wage workers.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 29.2% of all low-wage workers have not completed high
school.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: in all categories of educational attainment combined, the
probability of being a low-wage worker is 27.9%. Among workers who have not
completed high school, 56.9% are low-wage.

Next, consider the geographic distribution of workers. Table 8 shows
low-wage workers are not disproportionately concentrated in any one of the four
major geographic regions; however, low-wage/low-income workers are more likely
to live in the South than are workers in general (39.9 percent v. 34.8
percent). This reflects the fact that wages tend to be lower in the South than
elsewhere.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 16.1% of low-wage workers reside in the Northeast.

Interestingly, low-wage/low-income workers are disproportionately located
in both rural and urban areas relative to all workers. While 21.0 percent of
all workers live in rural areas, 28.7 percent of low-wage/low-income workers do
so. And 37.5 percent of low-wage/low-income workers live in urban areas,
compared to 28.2 percent of all workers. Low-wage/low-income workers, however,
are not concentrated in the 20 largest urban areas. This may indicate that
workers (and their spouses) in larger cities have more job options than workers
in smaller cities and/or in rural areas and are thus not disproportionately
low-wage/low-income workers. As a result, geographically focused programs aimed
at raising wages and incomes should not be targeted at the largest urban areas;
targeting rural areas may be fruitful, but it is challenging because the
population is spread out over a large area.

Tables 9 shows the distribution of low-wage, low-wage/low-income, and all
workers across occupations and industries. Low-wage/low-income workers are
over-represented in service occupations (expect protective and household) and
in retail trade. While only 12.1 percent of all workers are in non-protective,
non-household service occupations, over a quarter of low-wage workers and
low-wage/low-income workers are so employed. And almost one third of low-wage
workers are employed in retail trade compared to 17.9 percent of all workers.
Low wage workers are under-represented in the ranks of executive and
professional occupations (11.2 percent v. 27.8 percent of all workers) and in
manufacturing industries (10.0 percent v. 15.6 percent).

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 11.2% of all workers in executive and professional
occupations are low-wage.

Table 10 shows the probabilities of being a low-wage worker and a
low-wage/low-income worker by race/ethnicity as well as by foreign born and
citizenship status. Hispanics are far more likely to be low-wage workers than
whites and blacks (43.2 percent v. 27.1 percent for whites and 33.7 percent for
blacks). Over one out of every five Hispanic workers are low-wage and live in
low income families compared to 8.6 percent of whites and 16.8 percent of
blacks. Recent immigrants and non-citizens are also disproportionately likely
to be low-wage workers (46.3 and 43.7 percent, respectively, compared to 27.9
percent of all workers), low-wage/low-income workers (23.8 and 22.5 percent,
respectively, compared to 9.6 percent), and low-wage/low income workers in
families with children (13.0 and 13.4 percent, respectively, compared to 5.0
percent).

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: in all categories combined, the probability of being a
low-wage worker is 27.9%. Among white workers, 27.1% are low-wage. Column
categories are not mutually exclusive.

While Hispanics and recent immigrants are disproportionately likely to be
low-wage workers and in low-income families, they represent only a small share
of the low-wage workforce. As Table 11 illustrates, only 15.7 percent of
low-wage workers and 10.1 percent of low-wage/low-income workers are Hispanic.
Similarly, only 7.4 percent of low-wage workers and 4.4 percent of
low-wage/low-income workers are recent immigrants. Thus, even highly effective
policies targeted at these population sub-groups will have a modest impact at
best on the overall proportion of workers with low wages and low family
incomes.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 81.6% of low-wage workers are white. Column categories are
not mutually exclusive.

Finally, Table 12 shows that low-wage workers are appreciably younger than
workers in general. While 17.3 percent of all workers are less than 25 years
old, 37.8 percent of low-wage workers are young workers. Only 31.9 percent of
low-wage/low-income workers and 28.8 percent of low-wage/low-income workers
with children are less than 25 years old. Interestingly, 7 out of 10 low-wage
workers in low-income families with children are prime-age workers (ages 25 to
54), almost exactly the same proportion found among all workers.

Source: Urban Institute tabulations on data from the 1998
March Current Population Survey.

Note: A low-wage worker averaged less than $7.50 an hour in
earnings in 1997; a low-wage/low-income worker is a low-wage worker who lived
in a family with a total annual family income below $24,600. An example of how
to read the table: 37.8% of low-wage workers are less than 25 years old.

Only one in twenty workers are low-wage/low-income workers with children.

Low-wage/low-income workers are a diverse group--compared to all workers,
they are disproportionately likely to be unmarried without children and to be
single mothers:

2 out of five low-wage/low-income workers are unmarried without children;

Almost one-quarter are single mothers.

Compared to all workers, low-wage, and low-wage/low-income workers work
fewer hours and have less education.

Low-wage/low-income workers are disproportionately located in the South and
in rural areas.

Low-wage/low-income workers are more likely to work in retail trade and
less likely to work in manufacturing than workers in general.

While Hispanics and recent immigrants are more likely to be
low-wage/low-income workers than workers in general, they represent a small
portion of the total number of low-wage/low-income workers.

Although low-wage workers are disproportionately young, the proportion of
low-wage/low-income workers with children who are prime-age (25 to 54 years
old) is virtually the same as the proportion of all workers in the age
range--70 percent.